We built our house in 2004. We have an ARM which came due 2 years later. At the time, I tried to refinance. I was turned down, but didn’t realize that I would not have been turned down by every lender.
To make a long story short, in 2006 I had a very complicated pregnancy. I was on bed rest by month 3. My company did not offer short term disability and even though I did everything I was supposed to, my long term disability paperwork got messed up. I didn’t get paid it until sometime after the baby was born and by then I had gotten so far in debt.
I had an agreement where I was paying monthly for a year all the back mortgage payments. I did that, but my credit report didn’t reflect it and so it looked like we were farther behind than what we actually were. Because of this I really couldn’t get refinanced. But during this entire “repayment phase” my rate had gone up, without anyone letting me know.
Once the repayment phase was over I was left owing just about as much as before for the late payments of the new rate. My bill didn’t even reflect it at until after I had found out. Then guess, what another rate hike. Plus, we had an issue with our property taxes that we were working out with the county office (deed filed incorrectly so didn’t get a tax bill first year, and the 2nd year was all due plus late fees) the mortgage company paid the bill w/o our knowledge and our trying to get the title company (who made the mistake) to pay it went by the side. They added that onto our monthly payments.
Our payment went from 837 a monty to an outstanding 3300. My husband and I didn’t even make that much per month at the time.
When I called to try and work out something with the mortgage company they refused. They also refused to take partial payments. I was told by the mortgage company I needed to wait until it goes into foreclosure then I can get a loan modification. I had no choice. I did this. I consulted one of those websites with loss mitigation and they told me to go ahead an file it, b/c that is what they would do and it would save me 1000. I did everything that was asked, but was told by the mortg. co. I should have done it before it went into foreclosure b/c there might not be enough time.
I called everyday for 7 weeks about what the status was on the modification. I was told that there is still no decision and they will let me know. It came to the point that it was a few days before the sale of my home, so I filed ch13. Due to miscommunication from an employee at my attorney’s office (who is no longer employed there as of last week) my bankruptcy was dismissed without prejudice. I was told I could refile as early as in a few days and start the process over, b/c the mortg. co. is starting the foreclosure process again.
I’m wondering if I should hire someone to do a loan modification for me and if it would work this time. My rate is up to 11.75% and even though rates are dropping my is still rising.
If I file ch13 again, it will be 5 years before I can refinance and I know that the loan mod. is the best answer for us if we can get it. My husband and I both have better/stable jobs now. I just need some help and fast.
I’ve steered in the wrong direction so many times. I know what I need and want (loan mod – arrears put at end of loan and if possible the rate lowered).
We have plenty of equity in the house (which has led to many people trying to take advantage of). What do I do? I just need help.
Melissa (more…)
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